Meta Platforms earnings missed by $5.63, revenue topped estimates
Investing.com - UBS maintained its Neutral rating and $17.00 price target on Mobileye N.V (NASDAQ:MBLY) following the company’s announcement of a second Surround ADAS award. Currently trading at $13.44, InvestingPro analysis suggests the stock is undervalued, with a strong balance sheet showing more cash than debt.
The new nomination comes from a "leading" western automaker for a "high volume" program, following Mobileye’s initial award with Volkswagen. This second award represents progress for Mobileye’s longer-term strategy and could potentially lead to additional Surround ADAS contracts from other non-Chinese automotive manufacturers. The company maintains a healthy current ratio of 6.91, indicating strong operational flexibility.
Despite this positive development, UBS notes the new program isn’t expected to launch until 2028, creating a significant gap before revenue materialization. The financial services firm believes 2026 estimates for Mobileye now appear more reasonable than previous forecasts. While currently unprofitable, analysts expect the company to turn profitable this year, with revenue growth forecast at 12% for FY2025.Discover more insights about Mobileye’s financial health and growth prospects with InvestingPro, which offers exclusive access to detailed financial analysis and professional-grade research reports.
UBS analysts remain cautious about Mobileye’s near-term outlook, suggesting that at best, there is limited upside to current 2026 forecasts, and at worst, expectations might still be somewhat elevated. The firm’s maintained $17.00 price target reflects this balanced perspective.
The stock could experience a rally in the coming weeks if Mobileye issues a formal press release identifying the specific automaker for this new Surround ADAS award, according to UBS’s analysis.
In other recent news, Mobileye Global Inc. reported its third-quarter 2025 earnings, meeting analyst expectations with earnings per share (EPS) of $0.09. The company exceeded revenue forecasts, reporting $504 million compared to the anticipated $485 million. Additionally, Mobileye has increased its full-year 2025 revenue guidance to $1.865 billion, up from a previous estimate of $1.79 billion, indicating a 13% year-over-year growth. In response to these developments, Mizuho has adjusted its price target for Mobileye to $15.00 from $17.00, while maintaining a Neutral rating. These recent developments highlight the company’s performance and future expectations as projected by analysts.
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